General Mining Corporation Ltd ABN: 95 125 721 075

ASX Code: GMM

Quoted Securities: 47,902,234 ordinary f.p. shares Total Issued Capital: 63,034,628 ordinary f.p. shares

www.generalmining.com

Address:

65 Burswood Road Burswood WA 6100

Telephone:

08 9227 1186

Facsimile:

08 9227 8178 For more information, please contact:

Dr Boris Matveev Managing Director

08 9227 1186

Michael Wright Chairman

0413 158 050

27 September 2011

ASX ANNOUNCEMENT

Acquisition of Uvs Basin Mongolian Coal Project

HIGHLIGHTS

• Purchase letter agreement signed on buying 100% of a

coal exploration licence adjacent to the Company’s

licences at the Uvs project

• The Company started coal exploration at its existing

licences covering a substantial area of prospective

Carboniferous geology that hosts the Khuden Coal

Deposit nearby

• Potash exploratory drilling continues at the Uvs project

Uvs Basin Project

(Potash; coal & lithium brine exploration - GMM 100%)

The Company’s wholly-owned Mongolian subsidiary Golden Cross

LLC (“Golden Cross”) has signed a purchase letter agreement to

acquire a 100% interest in 19.6 km2 exploration licence 15206X

predominantly for the purpose of coal exploration. Exploration

licence 15206X is adjacent to the Company’s exploration properties

at the Uvs project (Figure 1).

Golden Cross will acquire exploration licence 15206X by way of a

staged acquisition. It is to be comprised of an initial right to acquire

50% of the exploration licence interest by the payment of a non-

refundable deposit of US$100,000 on execution of this agreement

and an additional non-refundable payment of US$300,000 after the

initial legal, technical, financial and regulatory due diligence period

that expires 60 days after the vendor obtains all necessary

approvals to permit exploratory drilling by Golden Cross. Golden

Cross will have a period of 16 months from the end of the initial

due diligence to carry out mineral exploration, including drilling,

and further due diligence; and to acquire the remaining 50% of the

exploration licence interest by making an additional non-refundable

payment of US$400,000.

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Figure 1: The Uvs Basin project area: licence 15206X and GMM’s licences and mineral occurrences and

deposits including Khuden Coal Deposit which is just outside the Company’s tenure

Licence 15206X located 200 m west of the Khuden Coal Deposit as well as the

Company’s licences 14404X (located ~1 km south of the Khuden Deposit) and

13848X cover parts of an inter-mountain basin detached from the major Uvs Basin

and comprising some of the Lower Carboniferous sedimentary geology (Figure 2).

This Lower Carboniferous sedimentary geology is known to host at least 7 black coal

seams discovered at the Khuden Deposit in the centre of this inter-mountain basin

(Figure 3).

The Khuden coal discovery in 1971 and some limited subsequent coal exploration in

the 1970-80s were focused on an 800 m by 1,300 m area (just outside licence

15206X and the Company’s licences), where several coal seams outcrop amidst

predominantly sandstone strata. Most of the Lower Carboniferous geology outside

this coal outcropping area remains largely unexplored, including the central part of

this basin covered by shallow Quaternary alluvial sediments.

The Independent Geological Report on Mongolia in the Company’s 2009 Prospectus

indicated the prospectivity of its Uvs licences for coal exploration and also included

the description of the adjacent Khuden Coal Deposit, where Russian category A to C2

coal resources were estimated to a depth of 30 m based on 1977 drilling and

trenching and further extended by diamond drilling in 1984 and 1985.

The prospectivity of the wider inter-mountain basin for discovering possible

extensions of the gently dipping Khuden black coal seams was suggested by some

original historical exploration reports and confirmed by two independent geological

reviews commissioned by the Company in 2008. This year the Company started

some preliminary coal exploration in this area including the compilation of all

available archival data on the historical coal exploration as well as a field

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reconnaissance. A dedicated coal exploration program will be planned to be carried

out in parallel with the potash and evaporite exploration in the Uvs Basin.

Figure 2: Carboniferous sedimentary geology and infrastructure around the Khuden Coal Deposit

A sealed highway and a high-voltage power line cross the Company’s licence 14404X

as well as licence 15206X within this inter-mountain basin (Figure 2). The highway

links the town of Ulaangom, the capital of the Mongolian Uvs Province, with the city of

Kyzyl in Russia. The coal exploration area is ~200 km by road from city of Kyzyl that a

major Russian industrial consortium plans to connect with the Trans-Siberian Railway

by a new railroad in 2014. On the other hand, this area is ~80 km by road from

Ulaangom and the Mongolian Government has published its plans to build a railroad

connecting the north-west of the country, including Ulaangom, with China by 2015.

Figure 3 : Panoramic view of the central part of the inter-mountain basin comprising the Lower

Carboniferous sedimentary geology:

A - licence 15206 area; B - outcropping coal seams at the Khuden Coal Deposit

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Figure 4: Sealed highway going south to Ulaangom and

north into Russia traverses coal project area

Update on Uvs potash exploration

As announced previously (refer ASX announcement dated 22 August 2011), a 3,000

to 5,000 line metres potash exploratory drilling program has commenced at the Uvs

Basin project targeting bedded potash as a primary exploration target.

This drilling program is currently underway and progressing as planned.

Figure 5 : Potash exploratory drilling in the Uvs Basin

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Figure 6 : Inspecting drill core at field camp in the Uvs Basin

Dr Boris Matveev

Managing Director

About General Mining Corporation Ltd (ASX: GMM)

General Mining Corporation Ltd is a Western Australian company with a substantial portfolio

of exploration properties in Mongolia and Western Australia. The Company is focused on bulk commodities, namely high-margin potash and coal at the Uvs Basin project in Mongolia, and iron ore at the Shoemaker project in Western Australia.

The Company also has some base metal and IOCG exploration properties in those

countries.

Competent Person Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore

Reserves is based on information compiled by Dr Boris Matveev, who is a Member of The

Australian Institute of Geoscientists. Dr Matveev is a full-time employee of General Mining

Corporation Ltd and has sufficient experience which is relevant to the style of mineralisation

and type of deposit under consideration and to the activity which he is undertaking to qualify

as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting

of Exploration Results, Mineral Resources and Ore Reserves’. Dr Matveev consents to the

inclusion in the report of the matters based on his information in the form and context in

which it appears.

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